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Madagascar

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After discarding socialist economic policies in the mid-1990s, Madagascar followed a World Bank- and IMF-led policy of privatization and liberalization until the onset of a political crisis , which lasted from 2009-2013 . The free market strategy had previously placed the country on a slow and steady growth path from an extremely low starting point. Exports of apparel boomed after gaining duty-free access to the US in 2000; however, Madagascar's failure to comply with the requirements of the African Growth and Opportunity Act (AGOA) led to the termination of the country's duty-free access in January 2010, a sharp fall in textile production, and a loss of more than 100,000 jobs; Madagascar regained AGOA access in January 2015 following the democratic election of a new President the previous year. Agriculture, including fishing and forestry, is a mainstay of the economy, accounting for more than one-fourth of GDP and employing roughly 80% of the population. Deforestation and erosion, aggravated by the use of firewood as the primary source of fuel, are serious concerns. Many investors remain wary of investing for fear of a return to political instability in the country and because of weaknesses in the business environment. Expansion in mining and agricultural sectors contributed to growth in 2014. International organizations and foreign donors resumed development aid to Madagascar after RAJAONARIMAMPIANINA appointed a new government in mid-2014, however full-scale assistance will require further policy reforms, particularly on addressing rampant corruption.